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Authorization to Sell Ibm Hardware Maintenance and Ibm Software Maintenance Services & Maintenance Management Services for General Business Program

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Authorization to Sell Ibm Hardware Maintenance and Ibm Software Maintenance Services & Maintenance Management Services for General Business Program AUTHORIZATION TO SELL IBM HARDWARE MAINTENANCE AND IBM SOFTWARE MAINTENANCE SERVICES & MAINTENANCE MANAGEMENT SERVICES FOR GENERAL BUSINESS PROGRAM Table of Contents SECTION SUBJECT PAGE PART I Authorization to Sell IBM Hardware Maintenance and IBM Software Maintenance Services 1 Definitions 3 2 Group Classification & Requirements: Maintenance/Services 4 3 Sweep 4 4 IBM Power Systems™ 5 5 IBM System z® 6 6 IBM Point of Sale (POS) 7 7 IBM System x® 7 8 IBM System Storage™ 7 9 IBM ServicePac® vs. IBM ServiceElite 7 10 Selling Competing Maintenance on IBM Products 8 11 Renewals 8 12 Maintenance Used Equipment 10 13 Replacement Business Partner Guidelines 10 PART II Maintenance Management Services (MMS) for General Business (GB) Program 1 MMS for GB VAE Changes to MMS for GB Program 11 2 History 12 3 Program Benefits and Advantages 14 4 “High-end” IBM System Storage 16 5 Determining a Customer’s General Business Status 19 6 Program Participation Requirements 19 7 Applying for Participation in the MMS for GB Program 21 8 Assistance on the MMS for GB Program 21 2 PART I Authorization to Sell IBM Hardware Maintenance and IBM Software Maintenance Services ______________________________________________________ Significant changes to text supporting the announcement effective January 2, 2013, are identified in red: ______________________________________________________ Section 1 – Definitions Qualified IBM Hardware – Sale of a server or MES model/processor upgrade that is acquired new from IBM or an IBM Business Partner -- Systems Distributor. Qualified IBM Hardware (QIH) must still be in an available status. If the QIH is withdrawn from marketing, the sale to an end-user customer must be prior to the effective date of the withdrawal. Qualified IBM Hardware must remain in productive use and be utilized at an end-user location (customer establishment). QIH consists of: IBM System z (server or MES model/processor upgrade) IBM Power Systems (server or MES model/processor upgrade), including System i/System p, except p505/510 Presence – Through the sale of Qualified IBM Hardware with a hardware-approved VAE (if applicable), a Business Partner establishes a footprint in the customer establishment. Sweep – “Sweep” is a provision, based on the sale of qualifying hardware in an end-user customer establishment, that allows Business Partners to include on an IBM ServiceElite Agreement maintenance and services on uncovered systems/machines in that customer establishment. Unlike hardware sales, the sweep authorization includes maintenance or services on systems which the Business Partner may not be approved to sell on their Profile. Sweep applies to either new transactions or renewals of IBM HWMA or IBM SWMA. In order for Business Partner sales of Qualified IBM Hardware (servers or MES model/processor upgrades) to serve as the basis for sweep, the install date in IBM records must be at least three months prior to the Maintenance Agreement start date. This applies to Qualified IBM Hardware installed by IBM (IBI) or classified as customer set up (CSU). Uncovered systems or machines – Systems or machines which are not under warranty nor covered under a maintenance agreement. Customer establishment – The customer establishment is the specific street address, city and state where qualifying hardware has been sold and is in productive use. 3 Section 2 – Group Classification & Requirements: Maintenance/Services Q2.1 Did IBM modify the previous Groups and requirements to sell IBM HWMA and IBM SWMA resulting from the removal of the customer value requirement from IBM Power Systems? What other changes have occurred within the Groups in 2012? A2.1 Yes. Effective January 23, 2012, Group classifications for selling maintenance and services were modified somewhat, including new definitions. In April, 2012, IBM PureFlex™ System and IBM PowerLinux products were added to Groups 2 and 4 (now in Group 3): Group Classification for Requirement for Authorization to Sell Maintenance and Services IBM HWMA and IBM SWMA GROUP 1 . IBM System z Requires the Sale of Qualified IBM Hardware . IBM Power Systems (includes i /p, but excludes p505/p510) Requires the Sale of Qualified IBM Hardware GROUP 2 IBM System p 505/510 only IBM PureFlex System x86/POWER IBM PowerLinux IBM HW in Group 2 Requires NO Prior Hardware Sale IBM BladeCenters (includes IBM POWER processor-based BladeCenter servers) GROUP 3 IBM System x (excludes IBM POWER processor-based BladeCenter servers and IBM PureFlex System x86/POWER) IBM HW in Group 3 Requires NO Prior Hardware Sale IBM PureFlex System x86 IBM System Storage Notes: (1) The Authorization to sell IBM HWMA and IBM SWMA applies to new transactions or renewals. (2) ServicePacs for maintenance/services may be sold without prior hardware sales. (3) Maintenance may be sold without prior hardware sales on any eligible OEM (non-IBM) products. (4) Effective July 3, 2012, consistent with the removal of the Value Added Enhancement (VAE) requirement on IBM System z, IBM Global Technology Services is modifying the Maintenance Authorization, and will no longer require a hardware-approved VAE on the sale of IBM System z. Exceptions will be provided if the Business Partner provided written notification for an August 3, 2012, effective date. This modification will be reflected in the August 2012 IBM Business Partner Exhibit, Service Offerings Table. Section 3 – Sweep Q3.1 Can you provide more information and the guidelines for utilizing sweep? A3.1 The IBM sweep authorization includes maintenance or services on uncovered systems or machines you may not be approved to sell on your Business Partner Profile, and accommodates customer requests to place all machines in an establishment on a single maintenance or services agreement. Uncovered systems or machines are defined as those that are not under warranty nor covered under a maintenance agreement. Sweep applies to new transactions or renewals of IBM HWMA or IBM SWMA. Q3.2 What are the new requirements for sweep? A3.2 Effective August 1, 2012, in order for Business Partner sales of Qualified IBM Hardware (servers or MES model/processor upgrades) to serve as the basis for sweep, the install date in IBM records must be at least three months prior to the Maintenance Agreement start date. This applies to Qualified IBM Hardware installed by IBM (IBI) or classified as customer set up (CSU). Q3.3 Business Partner A has had a maintenance contract with the end-user customer for many years. During that time they sold the customer three servers in one of the customer establishments. Are they still authorized to sell the maintenance? A3.3 Yes, under the Renewal section there is text addressing incumbency, provided their qualifying hardware, and any hardware-approved VAE or customer value, if required, remain utilized at the customer establishment. 4 a Business Partner who is currently the incumbent on the existing IBM maintenance agreement in the customer establishment, provided there was no post-Compliance finding against that Business Partner on the previous agreement, Q3.4 Using the example above, Business Partner B sold a new qualifying Power Systems server in the same customer establishment. The server was installed in IBM records on March 1, 2012. Will Business Partner B be eligible to participate in the customer’s contract renewal effective September 1, 2012, using the sweep authorization? A3.4 Yes, since Business Partner B’s sale of Qualified IBM Hardware (QIH) was installed in IBM records on March 1, 2012, they clearly met the new three-month period installation requirement for sweep; i.e. Business Partner B’s system was installed for a total of five months. If, however, Business Partner B’s QIH was installed in IBM records on August 1, 2012, they would not be able to meet the three-month period installation requirement for sweep until November 1, 2012. Section 4 – IBM Power Systems Q4.1 Can you explain how the removal of the customer value requirement on IBM Power Systems (includes IBM System i® and IBM System p®) affected maintenance and services? A4.1 Consistent with removal of the customer value requirement on Power Systems, IBM Global Technology Services removed the customer value requirement from its Authorization to Sell IBM Hardware Maintenance (HWMA) and IBM Software Maintenance (SWMA), effective January 23, 2012. Instead, the Authorization refers to “Qualified IBM Hardware” (QIH) as the basis for selling IBM HWMA and SWMA. Q4.2 Did removal of the customer value requirement change the approach to management of maintenance and services activities? A4.2 Removal of the customer value requirement had no impact on the current management of maintenance and services nor the review process which includes: Accessing the customer’s inventory for the entire enterprise, Sorting records by customer establishment to identify Qualified IBM Hardware sold by Business Partners, Reviewing machine type/models to ensure Qualified IBM Hardware is in productive use, and Determining if there are any maintenance/services contracts in place, including expiration dates Q4.3 How did the removal of the customer value requirement on Power Systems affect the previous Power Systems sales with VAE or customer value? A4.3 There is no impact, provided the hardware, and VAE or customer value, are still in productive and are being utilized in the customer establishment. Q4.4 A Business Partner sold a Power Systems server to a new customer. Is the Business Partner authorized to sell to IBM HWMA on that hardware? A4.4 Yes, the Business Partner can sell a Warranty Service Upgrade and post warranty maintenance on the Power Systems server through a ServiceElite Agreement. Q4.5 The new customer described above has requested the Business Partner also include on the ServiceElite Agreement other hardware in the same customer establishment that the Business Partner did not sell. The hardware is in Group 1. Is the Business Partner authorized to sell to IBM HWMA on the other hardware? 5 A4.5 Yes, provided the IBM Power Systems server is new and meets the requirements of Qualified IBM Hardware and remains in productive use and is utilized in the customer establishment.
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